Gold Slips As Fed Rate Hike Odds Hit 88%, Hot US Inflation And Crude Rally Pressure Bullion
New Delhi: Global gold prices slipped on Monday as stronger-than-expected US inflation increased expectations that the Federal Reserve could raise interest rates at its policy meeting later this week. Spot gold traded near USD 4,340 an ounce, down nearly 0.2 percent during the session. The precious metal has lost about 1.8% over the past week amid growing concerns over interest rates. Silver also…
Gold prices fell on Monday as US inflation proved stronger than anticipated, raising the likelihood of a Federal Reserve interest rate hike. Spot gold hovered around USD 4,340 an ounce, slipping nearly 0.2 percent in the session. Over the past week, the precious metal had shed about 1.8 percent due to mounting concerns over rising interest rates.
Silver also faced pressure, slipping nearly 0.8 percent to about $64 an ounce. Additionally, platinum and palladium declined in value. On the MCX Trading Restricted platform, gold and silver contracts would only trade during the evening session on Monday due to Ganesh Chaturthi, with trading resuming at 5 pm and concluding at 11:30 pm.
Gold and silver prices saw a sharp decline, with silver now falling 1.83 lakh rupees below its record high. MCX gold futures for October delivery were valued at ₹1,52,655, while silver futures for September delivery were at ₹2,34,886 per kg. Strengthening US inflation in August further fueled concerns about persistent price pressures, increasing the probability of a September rate hike by the Federal Reserve to 88 percent.
Higher interest rates typically put downward pressure on non-yielding assets like gold and silver. Fresh geopolitical tensions have also driven crude oil prices higher, heightening fears of another inflationary impact.
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